CASH LIMIT FOR PURCHASES OF IMMOVABLE PROPERTY
This query is : Resolved
15 November 2021
Sir
I want to purchases new flat of Rs 65 Lakh. How much amount shall i pay in cash ?
Please explain me rule .
I want to purchases new flat of Rs 65 Lakh. How much amount shall i pay in cash ?
Please explain me rule .
15 November 2021
Seller cannot take more than Rs. 20000/- by cash, for sell of any immovable property.
15 November 2021
From 1 June 2015, transactions in immovable properties for cash in excess of Rs 20,000 barred u/s. 269SS of IT act. (binding on seller)
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15 November 2021
Thanks sir.
Can you please share me any chart showing all rules regarding cash receipts & cash payment under income tax act.
Can you please share me any chart showing all rules regarding cash receipts & cash payment under income tax act.
15 November 2021
List of restriction on cash transaction under Income tax law: –
Section 13A –
No donation exceeding Rs. 2000/- can be received in cash by political parties.
Section 35AD –
The capital expenditure covered U/S 35AD shall NOT be allowed as deduction if paid in cash in excess of Rs. 10000/-.
Section 36-
Section36(1) (ib) puts restrictions on deduction for amount of premium paidby the employer for health insurance of its employees if paid in cash.
Section 40A (3) and 40A (3A) –
The deduction in computation of income from Business and Profession is NOT allowable in respect of which a payment or aggregate of payments made to a person in a DAY, otherwise than by a crossed account payee cheque or bank draft or use of electronic clearing system through a bank account exceeding Rs. 10,000/-.
This limit is extended to Rs. 35,000/- in the case of payment for transportation charges. Few exceptions are provided in Rule 6DD of Income Tax Rules.
Crux – NO PENALITY but expenses shall be DISALLOWED
Section 13A –
No donation exceeding Rs. 2000/- can be received in cash by political parties.
Section 35AD –
The capital expenditure covered U/S 35AD shall NOT be allowed as deduction if paid in cash in excess of Rs. 10000/-.
Section 36-
Section36(1) (ib) puts restrictions on deduction for amount of premium paidby the employer for health insurance of its employees if paid in cash.
Section 40A (3) and 40A (3A) –
The deduction in computation of income from Business and Profession is NOT allowable in respect of which a payment or aggregate of payments made to a person in a DAY, otherwise than by a crossed account payee cheque or bank draft or use of electronic clearing system through a bank account exceeding Rs. 10,000/-.
This limit is extended to Rs. 35,000/- in the case of payment for transportation charges. Few exceptions are provided in Rule 6DD of Income Tax Rules.
Crux – NO PENALITY but expenses shall be DISALLOWED
15 November 2021
Section 40A (3A) further provides if any amount is claimed as expenditure in any particular year and the cash payment exceeding Rs. 10000/- (Rs. 35000/- for transportation charges) is made in any subsequent year. The same will be ADDED to the income of that subsequent year.
Section 43(1) –
Where an assessee incurs any expenditure for acquisition of any assets in excess of Rs. 10,000/– otherwise than by way of banking channels, the same shall NOT be included in the cost of the asset, meaning thereby that the DEPRECIATION shall NOT be allowable on that cost.
Section 43(1) –
Where an assessee incurs any expenditure for acquisition of any assets in excess of Rs. 10,000/– otherwise than by way of banking channels, the same shall NOT be included in the cost of the asset, meaning thereby that the DEPRECIATION shall NOT be allowable on that cost.
15 November 2021
Section 80D –
No deduction is allowed from gross total income if health insurance premium or medical expenditure on the health of the assesse or his parents or the dependent family members is paid in cash.
Section 80G –
No deduction is allowed for donation if paid in cash in excess ofRs.2000/-
Section 80GGA –
Donation in respect of scientific research or rural development are NOT deductible if paid in cash in excess of Rs. 10000/-
Section 80GGB –
The contribution made by an Indian Company to any political party or electoral trust is NOT allowed as deduction if paid in cash.
Section 80GGC –
The contribution made by any person other than Indian company to any political party or electoral trust is NOT allowed as deduction if paid in cash.
Section 80JJAA –
This section provides for a deduction of an amount equal to 30% of additional employee cost incurred in the course of such business in the previous year for three assessment years including the assessment year relevant to the previous year in which such employment is provided. The deduction is subject to the conditions specified in the section and that the payment is made by way of any of the modes other than by way of cash.
No deduction is allowed from gross total income if health insurance premium or medical expenditure on the health of the assesse or his parents or the dependent family members is paid in cash.
Section 80G –
No deduction is allowed for donation if paid in cash in excess ofRs.2000/-
Section 80GGA –
Donation in respect of scientific research or rural development are NOT deductible if paid in cash in excess of Rs. 10000/-
Section 80GGB –
The contribution made by an Indian Company to any political party or electoral trust is NOT allowed as deduction if paid in cash.
Section 80GGC –
The contribution made by any person other than Indian company to any political party or electoral trust is NOT allowed as deduction if paid in cash.
Section 80JJAA –
This section provides for a deduction of an amount equal to 30% of additional employee cost incurred in the course of such business in the previous year for three assessment years including the assessment year relevant to the previous year in which such employment is provided. The deduction is subject to the conditions specified in the section and that the payment is made by way of any of the modes other than by way of cash.
15 November 2021
Section 269SS –
This section restricts to accept any loan, deposit and specified sum in cash if the sum (including earlier deposit) is Rs. 20,000/- or more.
Section 269T –
This section restricts to repayment of any loan, deposit and specified sum in cash if the sum is Rs. 20000/- or more.
Section 269ST-Restricition on cash transactions –
The section was introduced vide Finance Act, 2017 which prohibits the receipt of an amount of Rs. 2 Lakh or more by a person.
a. In aggregate from a person in a day or,
• In respect of a single transaction or,
• In respect transactions relating to one event or occasion from a person.
Otherwise than by an account payee cheque/draft or use of electronic clearing system through a bank account.
Note:
1. The above cash transaction limit is applicable on receiver and not the payer.
2. Bearer cheque and Self cheque will also be considered as CASH for the purpose of this Section
Section 269SU (W.E.F. 01-11-2019) –
Every person, carrying on business, shall provide facility for accepting payment through prescribed electronic modes, in addition to the facility for other electronic modes, of payment, if any, being provided by such person, if his total sales, turnover or gross receipt, as the case may be, in business exceeds 50 Cr. rupees during the immediately preceding previous year.
This section restricts to accept any loan, deposit and specified sum in cash if the sum (including earlier deposit) is Rs. 20,000/- or more.
Section 269T –
This section restricts to repayment of any loan, deposit and specified sum in cash if the sum is Rs. 20000/- or more.
Section 269ST-Restricition on cash transactions –
The section was introduced vide Finance Act, 2017 which prohibits the receipt of an amount of Rs. 2 Lakh or more by a person.
a. In aggregate from a person in a day or,
• In respect of a single transaction or,
• In respect transactions relating to one event or occasion from a person.
Otherwise than by an account payee cheque/draft or use of electronic clearing system through a bank account.
Note:
1. The above cash transaction limit is applicable on receiver and not the payer.
2. Bearer cheque and Self cheque will also be considered as CASH for the purpose of this Section
Section 269SU (W.E.F. 01-11-2019) –
Every person, carrying on business, shall provide facility for accepting payment through prescribed electronic modes, in addition to the facility for other electronic modes, of payment, if any, being provided by such person, if his total sales, turnover or gross receipt, as the case may be, in business exceeds 50 Cr. rupees during the immediately preceding previous year.
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